The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. It is calculated as a company's Total Current Assets excludes Total Inventories divides by its Total Current Liabilities. Music Licensing's quick ratio for the quarter that ended in Jun. 2024 was 30.10.
Music Licensing has a quick ratio of 30.10. It generally indicates good short-term financial strength.
The historical rank and industry rank for Music Licensing's Quick Ratio or its related term are showing as below:
SONG's Quick Ratio is not ranked *
in the Media - Diversified industry.
Industry Median: 1.46 * Ranked among companies with meaningful Quick Ratio only.
Music Licensing (OTCPK:SONG) Quick Ratio Explanation
The quick ratio is more conservative than the Current Ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash. Inventories generally take time to be converted into cash, and if they have to be sold quickly, the company may have to accept a lower price than book value of these inventories. As a result, they are justifiably excluded from assets that are ready sources of immediate cash.
In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. On the other hand, a high or increasing quick ratio generally indicates that a company is experiencing solid top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations. Such companies often have faster inventory turnover and cash conversion cycles.
The higher the quick ratio, the better the company's liquidity position.
Music Licensing Quick Ratio Related Terms
Music Licensing Quick Ratio Historical Data
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The historical data trend for Music Licensing's Quick Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Entertainment subindustry, Music Licensing's Quick Ratio, along with its competitors' market caps and Quick Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Music Licensing Quick Ratio vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Music Licensing's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Music Licensing's Quick Ratio falls into.
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets.
Music Licensing's Quick Ratio for the fiscal year that ended in Dec. 2023 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Music Licensing (SONG) has a Quick Ratio of 30.10 as of Jun. 2024. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Music Licensing and its competitors.
Is Music Licensing's Quick Ratio too high?
Music Licensing's current Quick Ratio is 30.10. The Media - Diversified industry median Quick Ratio is 1.46. Music Licensing's value of 30.10 is 1961.6% above this industry median.
How does Music Licensing's Quick Ratio compare to NFLX and DIS?
Music Licensing's Quick Ratio of 30.10 can be compared against companies in the Media - Diversified industry. The industry median Quick Ratio is 1.46. Music Licensing's value of 30.10 is 1961.6% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Quick Ratio for a Media - Diversified company?
The median Quick Ratio among Media - Diversified companies is 1.46, based on 1,039 companies in the industry. Companies in the top quartile (top 25%) have a Quick Ratio significantly above this median, while those in the bottom quartile fall well below. However, Quick Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Music Licensing's current Quick Ratio of 30.10 is 1961.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Quick Ratio mean?
A high Quick Ratio can signal that a stock is expensive relative to its fundamentals. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Music Licensing and its competitors. For the Media - Diversified industry, the median Quick Ratio is 1.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Music Licensing's current Quick Ratio is 30.10. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Music Licensing stock overvalued right now?
Music Licensing (SONG) has a current Quick Ratio of 30.10. The current Quick Ratio is 30.10 and 1961.6% above the Media - Diversified industry median of 1.46. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Quick Ratio calculated?
Quick Ratio is calculated from a company's financial statements. For Music Licensing (SONG), the current Quick Ratio is 30.10 as of Jun. 2024. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Music Licensing Inc is an operator of a public performance rights organization. The group is a music performing rights organization that represents songwriters, composers, and music publishers and issues public performance licenses to businesses. Its customers include television and radio stations, internet/streaming services, and mobile technologies, Satellite audio services like XM and Sirius, nightclubs, restaurants, bars, and other venues. The group generates revenue from monthly or annual license fees. The company licenses music to some of the prominent platforms and businesses, including TikTok, iHeartMedia, Triller, Napster, 7Digital, Vevo, & many others.
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